We’re within the midst of an enormous Crypto crash. So what ought to a brand new investor do?

We’re within the midst of an enormous Crypto crash. Right here’s how a lot the highest cryptos are down as in comparison with their All-Time Highs.

• Bitcoin is down 63%
• Ether is down 72%
• BNB is down 65%
• Cardano is down 85%
• Solana is down 89%
• Dogecoin is down 92%
• Polkadot is down 87%

I give attention to pre-listed sturdy initiatives with stable prospects and I take advantage of the ROHAS methodology to judge new crypto initiatives.

Within the ROHAS methodology, it’s worthwhile to grade a crypto venture on 5 parameters:

• Income
• Group
• Historical past
• Algorithm
• Social

1. Income

Perceive and analyze how the venture generates revenues for the ecosystem and what’s the international financial impression of the venture? This data might be obtained from:

• the official web site of the venture
• the White / Mild / Yellow / Beige Paper of the venture

Primarily based in your analysis, grade the income mannequin of the venture on a scale of 1 to five.

2. Group

The group / group (founders, dev, enterprise) have to be highly-skilled and have sturdy prior expertise, sturdy credibility, and optimistic social media standing.

This data might be obtained from the LinkedIn profiles of the group members. Be cautious of initiatives with nameless groups.

Primarily based in your analysis, grade the group behind the venture on a scale of 1 to five.

3. Historical past

The venture will need to have proven sturdy development in:

• Transaction quantity
• Lively customers
• Buying and selling quantity
• Liquidity
• Commerce pairs

Primarily based in your analysis, grade the historical past of the venture on a scale of 1 to five.

4. Algorithm

The consensus mechanism and know-how platform have to be sturdy. This data might be obtained by an evaluation of the venture’s GitHub repositories.

Primarily based in your analysis, grade the consensus mechanism and know-how platform of the venture on a scale of 1 to five.

5. Social

The venture will need to have a big, vibrant, energetic, engaged, optimistic neighborhood with a justifiable share of fanatics. The most important social platforms are Discord, Fb, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.

Primarily based in your analysis, grade the social neighborhood of the venture on a scale of 1 to five.

Purple flags

I avoid initiatives the place:

• Any ROHAS parameter is under 3.
• The venture appears too complicated.
• There may be sustained damaging publicity across the venture.

Disclaimer: I’m not a registered funding, authorized, tax advisor, or dealer/vendor. All funding / monetary / authorized opinions expressed by me are supposed as academic materials. You need to take into account in search of unbiased authorized, monetary, taxation, or different recommendation to examine how the data pertains to your distinctive circumstances. I hyperlink to or check with exterior assets to your comfort. I’m selective about them however I don’t endorse them.

This submit was first printed within the Crypto With Rohas e-newsletter: https://rohasnagpal.substack.com/p/crypto-investing-in-a-bear-market?s=w